§ 36-9-622. Effect of acceptance of collateral.
104 words·~1 min read·
/sc/title-36-commercial-code/chapter-9/commercial-code-secured-transactions/36-9-622·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§ 36-9-622. Effect of acceptance of collateral.
(a)A secured party's acceptance of collateral in full or partial satisfaction of the obligation it secures:
(1)discharges the obligation to the extent consented to by the debtor;
(2)transfers to the secured party all of a debtor's rights in the collateral;
(3)discharges the security interest or agricultural lien that is the subject of the debtor's consent and any subordinate security interest or other subordinate lien; and
(4)terminates any other subordinate interest.
(b)A subordinate interest is discharged or terminated under subsection (a), even if the secured party fails to comply with this chapter.